Mar 31, 2011

Indika posts Rp66 billion operating loss

Energy integrated company PT Indika Energy Tbk (INDY) today reported a 6.5% increase in net income last year, despite higher operating expense.
In a financial statement published today, Indika, parent of energy contractor PT Petrosea Tbk (PTRO), booked Rp773 billion net income last year from Rp726 billion net income in the previous year. The earning last year reached 60.61% of Indika's full year target at US$146.6 million or Rp1.28 trillion.
At the operational line, Indika suffered Rp66 billion operating loss, representing 134% drop from Rp191 billion operating income.
The loss was due to a 58.3% jump in operating expenses to Rp678 billion from Rp428 billion. Cancellation of overland conveyor belt project previously awarded by Adaro Indonesia and delay of Pertamina Gas contract which led to some costs being incurred earlier were the biggest contributors to the higher operating expenses.

Cost of goods sold also increased 68.9% to Rp3.15 trillion from Rp1.87 trillion. Indika's revenue rose 51.4% to Rp3.76 trillion from Rp2.49 trillion, representing full year contribution of Petrosea last year compared to 6 months contribution in 2009. The company initially targeted Rp4.17 trillion or US$479.4 million revenue in 2010. Operational performance
Indonesia's third largest coal producer with 50,400 hectares concession in East Kalimantan PT Kideco Jaya Agung, that is 46% owned by Indika, sold 29.08 million tons of coal, a 16.69% increase from 24.92 million tons.
Coal production grew 17.56% to 29.05 million tons from 24.71 million tons, however average selling price slighly increased 4.82% to US$55.19 per ton from US$52.65 per ton.
Kideco spent US$102.5 million capital expenditure (capex) last year. It aims to spend US$185.1 million capex this year with Petrosea and Kideco scheduled to allocate US$103 million and US$55 million capex respectively.